Dear Traders,
Let's be open minded about the world oil situation.
As we know, with the previous oil contract closing at negative prices due to the supply and demand issues with the corona virus, oil companies and the
general economy is taking a hit.
Our main approach with trading is based on technical analysis, so let's quickly go through what is happening.
The Monthly and Weekly chart are sitting at the major third touch trendline, which I covered months back in the community. At the moment, price is holding this trendline, due to the
relative 'positive' news about countries going out of lockdown, which will indirectly mean that oil will be used more and the contract value of oil will be atleast better than the last one.
What the most interesting one is though, is the daily chart, which is reaching a key area of supply around the 30 mark. I'll be looking closely at our supply area when it is reached and look for our intra-day patterns to develop and if so, take this one to the downside. The two main trading plans we teach at newcapital will be used to take a quick move and a long-term move to the downside, with of course also the trailing stop loss method.
Let's discuss in the comments, speak soon.
Max Nieveld
Let's be open minded about the world oil situation.
As we know, with the previous oil contract closing at negative prices due to the supply and demand issues with the corona virus, oil companies and the
general economy is taking a hit.
Our main approach with trading is based on technical analysis, so let's quickly go through what is happening.
The Monthly and Weekly chart are sitting at the major third touch trendline, which I covered months back in the community. At the moment, price is holding this trendline, due to the
relative 'positive' news about countries going out of lockdown, which will indirectly mean that oil will be used more and the contract value of oil will be atleast better than the last one.
What the most interesting one is though, is the daily chart, which is reaching a key area of supply around the 30 mark. I'll be looking closely at our supply area when it is reached and look for our intra-day patterns to develop and if so, take this one to the downside. The two main trading plans we teach at newcapital will be used to take a quick move and a long-term move to the downside, with of course also the trailing stop loss method.
Let's discuss in the comments, speak soon.
Max Nieveld